Question

describe at least different types of taxes​

Answer 1

Answer:

                                                         Types of taxes​

                                               Progressive taxes  

This is a type of taxation where as you have more income that is subject to tax, you pay higher average rates. This mostly relates to income taxes. The term “progressive” comes from the fact that as taxable income increases, the tax rate gets progressively higher.

The federal income tax brackets are an example of progressive taxation. The federal government uses marginal tax rates, which tax income within a certain range at one rate and income in a higher range at a higher rate.

A progessive income tax may also be referred to as a graduated income tax.

                                                   Regressive taxes

The opposite of a progessive tax is a regressive tax. This is a method of taxation where as you have more that is subject to tax, your average tax rate is lower. One example of a regressive tax is the Social Security tax, a type of payroll tax (more on that later).

All taxpayers need to pay the Social Security tax. For 2019, income up to $132,900 is subject to the tax. The higher your income goes above that limit, the lower the average rate that you pay.

                                           Proportional and flat taxes        

A proportional tax is one where the amount you pay is proportional to how much you have. You will also hear people refer to this as a flat tax. For example, imagine you live in a state with a flat income tax of 5%. Each taxpayer will pay 5% of his or her taxable income. Since everyone is paying a proportional amount of their income, this is a proportional tax.